Session #4/4

Training Schedule

Session 1 Session 2 Session 3 Session 4May 26 June 23 Sept. 22 Oct. 27

Guiding Principles

Social Value Creation

Stakeholders

Mapping outcomes

Selecting Indicators

Predictive vs. Evaluative SROI

Financial Proxies

Establishing Impact by Stakeholder

SROI calculations

Preparation for presentation of results

Agenda

Step by Step Example of Calculation Double counting Future projections

Break Example using the Social Evaluator SROI Membership and Assurance December’s Presentation Karen summarizing feedback from

evaluation

Learning Objectives

Understand how to make an SROI calculation

Appreciate the choices and decisions required when projecting value into the future

Have the tools you need to finalize an SROI analysis for your initiative

Clarify presentation of final SROI report

Impact Calculation (see guide p. 62)

Impact = Outcomes MINUS

Attribution, displacement and deadweight

SROI Calculation (see guide p. 66-69)

Total ImpactTotal Input

= SROI

Steps in the SROI Calculation

StakeholderSelect key beneficiaries - those are the stakeholders who benefit most directly, and indirectly, from your work.

Outputs Track the tangible numbers associated with your activity.

OutcomesName the specific changes that will result from your work (from the perspectives of various stakeholders).

IndicatorsSelect indicators that measure the outcomes you seek. The indicators need to be expressed in take the form of dollars.

ProxiesSelect proxies if you cannot find data that directly corresponds with the indicators.

Data Sources Go to the Social Enterprise Fund website for indicator and proxy data

ImpactAssess your impact by calculating the deadweight (what would have happened if you hadn't intervened) attribution (how many others contributed to the outcome) and displacement (if relevant)

Data Collection

Quantify your Inputs, Outputs, and Outcomes

Calculation

Add up all the inputs. Add up all the benefits. Subtract the deadweight, attribution and displacement. Calculate the SROI. Conduct a sensitivity analysis. Calculate the pay-back period. Project the value into the future assuming a drop off rate.

Translating Steps into an Example

StakeholderIf you are starting an employment program with troubled youth. Your stakeholders are youth, funders, and the Solicitor General.

OutputsThis could include number of people trained through the program; the number of jobs created, etc.

OutcomesYou may increase income, improve self esteem, reduce reliance on public benefits and reduce EYOC time/recidivism.

IndicatorsYou could compare monthly income before and after program participation, changes in welfare payments, days spent in EYOC.

ProxiesYou may wish to find a proxy to stand in for increased self-esteem such increase in volunteer hours.

Data Sources

SROI database shows that Wild Rose Foundation values volunteering @ $15/hr and incarceration costs; welfare rates and employment income from own data base.

ImpactIf 25% of all young offenders gain steady employment without your program, you have 25% deadweight. If you collaborated with 1 other agency, you could attribute 30% of the success to them.

Data Collection

See data table on next page.

Calculation See tables on next page.

Sample Data Table: Youth Program

Variables Indicators Data/ValueInputs Grant for one year’s operation $400,000 Outputs No. of youth trained per year 50   Average hours of volunteering per mo. 7

Average employment (in months) 8  % of Youth who do not re-offend (1 yr) 90%  % of Youth who found employment 75%

% of Youth with increased self-esteem 85%Outcomes Youth: Average wage based income/mo $1,850

 Youth: Increased self-esteem thru volunteering $15

  Funder: Average reduced IS payment/mo $583   Sol Gen: Average reduced stay in EYOC $10,530 Impact Deadweight 25%  Attribution could range from 20% to 30% 30%

Sample Adding Up the Benefits

Annual Benefit Value Calculation

Employee Wages Earned $ 555,000 $1850 *8 mo* 50 * 75%Less Lost IS Benefits $ (174,900) $583 * 8 mo * 50 * 75%

Increased Self Esteem $ 53,550 $15 x 7hrs x 8 mo x 50 x 85%

Sub-total Benefits to Youth $ 433,650 Sum of 3 lines above

Welfare benefits Re-allocated $ 174,900 $583 * 8 mo * 50 * 75%

Young Offender Centre Re-allocated $ 473,850 $10,530*50* 90%

Sub-total Benefits to State $ 648,750 Sum of 2 lines above

Total Benefits Created $ 1,082,400 Sum of 2 sub-totals

Sample SROI Calculation Value Description

Total benefits Created $ 1,082,400 As taken from aboveMinus deadweight -$ 270,600 Used 25%

Minus attribution -$ 324,720 Used 30%

Net Value Created Year 1 $ 487,080Total benefits minus deadweight

and attribution

SROI for Year 1 1.2:1Net Value divided by Investment

(Input) $400,000

Pay Back Period (see guide p. 71)

The basic formula is:Payback Period in Months = Investment .

Annual impact * 12

Value Description

Net Value Created Year 1 $ 487,080 Total benefits minus deadweight

and attribution

Investment $ 400,000 Investment (Input) $400,000

 

Mo’s to Break Even 10 $400,000/$487,080*12 = 10

Caution on Double Counting

Be clear on the chain of events ala WBF: Preparation for the GED exam led to Graduation from the Training Program

led to Employment

Counting all the links in the chainartificially inflates the value

Only count the last link – the endand not the means

Projecting Future Value

The impact may last longer than the initial period of investment.

Longer term impacts can be measured (if indicators are tracked over time) or estimated.

Where outcomes last for more than the period over which the investment or expenditure relates, the financial proxy for the value of those outcomes needs to be discounted.

Discounting (see guide p. 67)

Discounting relates to financial values. (Drop off relates to duration of benefits).

Group Discussion:Would you prefer to receive

$1,000 today or in five years? Why?

DiscountingWhat is the future value of

money? According to the Treasury Board, $1,000 is worth $837 in 5 yrs time.

• $1,000 loses value at 3.5% per year

• A blunt instrument, but more credible than 0%

Sample Projecting the Value

Indicators Data Source/Description

Discount rate 3%Time value of money - used Alberta inflation rate from AED website

Benefit period

3 Number of years into the future that we are projecting

Drop Off Rate 15% Decline in success rate, year on year

Sample SROI Calculation Value Description

Net Value Created Year 1 $ 487,080 Total benefits minus deadweight

and attribution

Net Value for Year 2 $ 414,018 85% of Year One Net Value

Net Value for Year 3 $ 351,915 85% of Year Two Net Value

Net Present Value for 3 Years $ 1,185,197 Used 3% discount rate

SROI for 3 Years 3:1Net Present Value over 3 years

divided by the Input $400,000

Sensitivity analysis (see guide p. 69-70)

Check different assumptions and their impact:• deadweight, attribution and drop-

off• financial proxies• quantity of the outcome• value of non-financial inputs

From Impact Map to SROI report

Having completed the impact map, you are ready to start inputting your information into the Social Evaluator.

Other than what’s in the impact map, What else do you think should be in a report?

Reporting (see guide p. 74-75)

SROI aims to create accountability to stakeholders. As such it is important that the results are communicated to stakeholders in a meaningful way.

Your final report should comprise much more than the social returns calculated. It should tell the story of change and explain the decisions you made in the course of your analysis.

When telling our story we need to include qualitative information to bring the data alive

Calculating the SROI on the Evaluator

www.socialevaluator.eu Demonstration of how I had to tweak

the SROI example (done in excel) to fit the Social Evaluator model

SROI Standards

The SROI Network is developing an assurance scheme that will include:• Accreditation of practitioners• Assurance of SROI analyses

• Verification• Assurance• Audit

Report Assurance

To have a report assured by the SROI network practitioners must:• Become a member of the network

• Pay approximately $500 for the peer review (this cost will be covered for SROI’s produced through this training IF they are submitted by December 15th.)

Homework

Gather the data required to complete filling in the balance of the Evaluator software

Add in all the qualitative elements needed for a complete SROI

Complete your SROI analysis Present your draft SROI report to

stakeholders for feedback Develop your presentation Consider applying for membership in SROI

Network and trying for assurance

December 15th Presentation Your application included a commitment

checklist with an agreement to complete an SROI report – still an expectation

All participants are expected to attend and present their findings

Assistance with report research and inputting into the Evaluator available until Dec. 10th

Members of the SROI Network will attend as part of a mutual learning exchange

The presentations will run from 9 – 12 (a presenter’s schedule will be emailed)

The location will be the United Way

Presentation Guidelines

Presentation will not exceed 10 minutes; 8 minutes summarizing your SROI analysis; 2 minutes sharing your insights into SROI (as it relates to your project)

We will leave 5 minutes for Q & A Power point projector available – please

email presentations to Anna so that they can be loaded BEFORE the event

Up to you to make hand outs for audience members (no more than 35)

Results will not be published on the Social Enterprise Fund website

Example of Other Training

In case you think you have it hard…. It could be worse

Evaluation

Karen Kerr on Interim Evaluation Results

Plans for the Final Evaluation (tie in to the presentation day?)

Session #4 evaluation